ETH/USD Forecast: Recovery Capped By $180
|The ETH/USD pair recovered well, but struggling to go through the $175-180 resistance.|
|On the downside, there is a decent support forming near $160.|
|ETH/BTC remains elevated with chances of a break above the 0.080BTC resistance.|
Technically, the hourly chart indicators are slowly moving higher in the bullish territory.
Ether Price to Consolidate Short-term?
The ETH/USD pair bounced back after plummeting by the end of last week towards $110-115, and currently trading above the $150-160 support area.
Further recoveries seem likely, but as mentioned in the weekly analysis, the pair faces a crucial challenge near $175-180. The stated resistance zone was already tested once recently, but thin trading prevented a break above $180.
The price moved lower and tested the 23.6% Fibonacci retracement level of the last wave from the $115 low to $178 high. In the short term, the $160 support area may continue to prevent downsides.
There is a bullish trend line with support at $165 forming on the hourly chart. On the flip side, there is a connecting bearish trend line with resistance at $170.
We can consider the current technical structure as a short-term breakout pattern. A break below the trend line support might call for a test of $160, and if buyers clear the $170 resistance, there can be a test of $180.
If the market try to retest $160, then it may act as a strong support for a subsequent bounce. Below $160, the next important support is at $145-143.
On the upside, the 4-hour chart clearly points the significance of the $175-180 resistance, and it may continue to prevent further gains.
Should there be a break above $180, the market may attempt to test sellers at $200. With the ongoing ETH/USD recovery looking so far positive, the risk is still towards the upside. Thus, pullbacks towards $160 or $145 remain supported in the near term.